The news from the weekend from OPEC+ meeting, raising oil output more than expected:

• OPEC+ to raise output by 548,000 bpd in August vs 411,000 bpd in July

In effect, the decision returns nearly 80% of the 2.2 million bpd
voluntary cuts from eight OPEC producers back in the market

• actual output increase has been smaller than planned so far
• most of the supply has been from Saudi Arabia

OPEC+ cited

• steady global economic outlook
• healthy
  market fundamentals
• low oil inventories

as reasons
for releasing more oil.

Analysts have responded with:

• increased production represents a more
  aggressive competition for market share
• OPEC+ showing some tolerance for
  the resulting decline in both prices and revenue

The price response:

• Oil prices fell just over 1% at the Globex open on Sunday evening US time

Goldman Sachs expects an slightly bigger boost at the next meeting, scheduled for August 3:

• expect a final 550,000
  bpd increase for September

Update:

This article was written by Eamonn Sheridan at www.forexlive.com.

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